December 6, 2022

Volume XII, Number 340


December 05, 2022

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U.S. Office of Government Ethics Updates Rules Governing Recruiting of Federal Employees to Private Sector Jobs

Companies are increasingly hiring out of the federal workforce, only to find that their new hires are restricted by “revolving door” rules that prohibit their participation in certain matters – sometimes for a limited time, sometimes permanently. New rules issued recently by the U.S. Office of Government Ethics (“OGE”) serve as a reminder that, even before hiring a federal employee, a company may find itself entangled in federal ethics rules that regulate the job negotiation process.

Under existing rules, federal employees seeking nonfederal employment may need to recuse themselves from handling matters involving potential employers with whom they are discussing future employment. Once hired, the “revolving door” rules may prohibit a former federal employee from making communications to, or appearances before, the federal government.  State bar rules may impose further restrictions if the federal employee is a lawyer. 

The new rules are a revision of 5 C.F.R. Part 2635, governing how federal employees may interact with potential nonfederal employers. The rules address the criminal conflict of interest law at 18 U.S.C. § 208, the requirements of Executive Orders 12674 and 12731, and, with this revision, the notification and disclosure requirements of the Stop Trading on Congressional Knowledge Act (“STOCK Act”). The newly issued rules include substantive additions and changes that will affect employers. The most important ones are highlighted below. They take effect August 25, 2016.

Keep reading this advisory here.

© 2022 Covington & Burling LLPNational Law Review, Volume VI, Number 228

About this Author

Robert Kelner, Covington, Government affairs attorney

Robert Kelner is the chair of Covington’s nationally recognized Election and Political Law Practice Group.  He counsels clients on the full range of political law compliance matters, and defends clients in civil and criminal law enforcement investigations concerning political activity. He also leads the firm’s prominent congressional investigations practice.

Mr. Kelner’s political law compliance practice covers federal and state campaign finance, lobbying disclosure, pay to play, and government ethics laws. His expertise includes the Federal Election Campaign Act...

Andrew Garrahan, Public policy attorney, Covington Burling

Andrew Garrahan represents and counsels clients at the intersection of law and politics. He guides them through both regulatory compliance issues and government investigations on matters including state and federal campaign finance, ethics, lobbying, and corruption.

Mr. Garrahan’s prior career in political fundraising gives him a unique perspective on the challenges faced by his clients, which include corporations, candidates, government officials, political and nonprofit organizations, and private individuals.